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karmic_caboodle
Returning Member

Where to enter non taxable income?

Hello,

I was on short term disability but was told it was not taxable. I also had to rent out my home since I was on disability and needed the extra income. I received a security deposit for the rental which I was also told was not taxable. Where do I enter non taxable income? Coz if the IRS looks at my bank account they will see the money coming in so I want to be able to mention that in my tax return and mark it as non taxable so they know what it is.

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3 Replies

Where to enter non taxable income?

you don't enter these types of nontaxable income anywhere on your 1040.  look at this from the IRS perspective you say that you have nontaxable income. how can the IRS be sure you are not lying and why are you mentioning this. could create the can of worms you are trying to avoid. should the IRS audit and asks about certain deposits you can show the the insurance contract and whatever else you get from the insurance company. if you have a written lease then that would have the security deposit, if not written then you will probably have issued a refund check by the year the IRS does the audit.

 

PattiF
Expert Alumni

Where to enter non taxable income?

The home rental is reported on Schedule E. The security deposit does not have to be entered in Schedule E, but it is supposed to be placed in a separate interest-bearing bank account.

 

Please see this TurboTax help article about Schedule E.

 

@karmic_caboodle 

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Where to enter non taxable income?

thats not right, you report all income,

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